The Urgency of Forming A New International Commercial

Provision Toward A Worldwide Disease Outbreak

Abdul Adhim Mustaqim, Syarifa alifia azzahra, Nadya Puteri Andreza, Ayu Mega Rakhmawati, Fadia Fitriyanti
International Program for Law and Sharia, Faculty of Law, Universitas Muhammadiyah Yogyakarta
Lecture of Faculty of Law, Universitas Muhammadiyah Yogyakarta
Correspondence: Universitas Muhammadiyah Yogyakarta Jl.Brawijaya, Tamantirto, Kasihan, Bantul, Yogyakarta

Urgensi pembentukan peraturan perniagaan Internasional baru selama pandemi

Atau pentingnya pembentukan peraturan perniagaan Internasional baru ketika dunia dihadapi
pandemi

Abstract

Since 2020, COVID-19 has become the hottest line of discussion in the world. The impact shows
influence in various aspects, and affects many countries, one of which is Indonesia. COVID-19 has
spread across the world, and so have protectionist measures. Governments on various continents have
implemented a number of measures allegedly protecting their economies and health systems from the
damage caused by the pandemic. The COVID-19 pandemic is a form of threat to national security.
Therefore, the state is responsible for providing protection for its citizens, both from an economic and
social perspective. One form of state responsibility towards its citizens is to create national economic
prosperity, so that the state will do everything it can to protect the sustainability of the economic sector.
The economic and health crisis caused by the COVID-19 pandemic led countries that originally upheld
the principles of free markets to issue hundreds of thousands of trillion in subsidies to improve their
defenses from foreign companies. In the end, the state is expected to start focusing on finding long-term
alternative policies that can benefit more parties. The same situation can be found in the case of export-import
of foodstuffs during the COVID-19 pandemic. The decision of several countries to impose restrictions or ban on
exports of foodstuffs can be said to be a form of protectionism policy carried out by the state based on national
interests. For exporting countries, one of the main goals of limiting exports is to ensure that their country has
sufficient food supplies, especially during a pandemic.

Keywords : Urgency, International comercial law, The COVID-19 pandemic, crisis, economic sector
 Abstrak

Sejak tahun 2020, COVID-19 telah menjadi jalur diskusi terpanas di dunia. Dampaknya menunjukkan pengaruh
dalam berbagai aspek, dan mempengaruhi banyak negara, salah satunya Indonesia. COVID-19 telah menyebar ke
seluruh dunia, begitu pula tindakan proteksionis. Pemerintah di berbagai benua telah memberlakukan sejumlah
tindakan yang diduga melindungi ekonomi dan sistem kesehatan mereka dari kerusakan akibat pandemi. Pandemi
COVID-19 merupakan salah satu bentuk ancaman terhadap keamanan negara. Oleh sebab itu, negara bertanggung
jawab untuk memberikan perlindungan bagi warga negaranya, baik dari segi ekonomi maupun sosial. Salah satu
bentuk tanggung jawab negara terhadap warganya adalah dengan menciptakan kesejahteraan ekonomi nasional,
sehingga negara akan melakukan segala cara demi melindungi keberlangsungan sektor ekonomi. Krisis ekonomi
dan kesehatan yang disebabkan oleh pandemi COVID-19 membuat negara-negara yang awalnya menjunjung
prinsip pasar bebas mengeluarkan ratusan ribu triliun subsidi untuk meningkatkan pertahanan mereka dari
perusahaan asing. Pada akhirnya, negara diharapkan untuk mulai berfokus dalam menemukan kebijakan alternatif
jangka panjang yang mampu menguntungkan lebih banyak pihak. Keadaan yang sama dapat ditemui pada kasus
ekspor-impor bahan makanan selama pandemi COVID-19. Keputusan beberapa negara untuk melakukan
pembatasan atau larangan ekspor untuk bahan-bahan makanan dapat dikatakan sebagai salah satu bentuk
kebijakan proteksionisme yang dilakukan oleh negara dengan landasan kepentingan nasional. Bagi negara
eksportir, salah satu tujuan utama dalam melakukan pembatasan ekspor adalah memastikan bahwa negara mereka
memiliki persediaan pangan yang cukup, terutama selama masa pandemi.

Kata kunci : Urgensi, Hukum Perniagaan Internasional, Pandemi COVID-19, Krisis, Sektor Ekonomi,
 I. Introduction

The visible impact does not only affect public health, but also affects the country's economy. Not
finished discussing the negative effects and impact of the capitalist economy in 2020, Indonesia,
even in the world, was shocked by the emergence of a new type of virus known as the Corona
Virus or in its scientific designation as Covid-19. The corona virus began to spread around the
Wuhan area and has now infected more than 100 countries. A total of more than 100,000 people
in the world tested positive for this virulent virus. The number of new cases reported in China
has indeed decreased. However, the increase in cases actually occurred in South Korea, Italy and
Iran. The increasing spread of the corona outbreak to various parts of the world is a serious threat
to the global economy. "The widespread spread of COVID-19 will prolong the period of the
economic downturn in the Asia Pacific region. Australia, Hong Kong, Singapore, Japan, South
Korea and Thailand are predicted to be dragged into a recession, according to S&P. In addition,
China's economic growth forecast for 2020 from 5 , 7% is predicted to fall to 4.8%. The
countries whose economies will be badly affected are Hong Kong, Singapore, Thailand and
Vietnam. Given that the tourism sector accounts for nearly 10% of the country's Gross Domestic
Product (GDP). "Travelers from China contribute large proportion of the total foreign tourists in
the country. Even today the world economy is under heavy pressure due to this virus. The overall
objective of the preparedness and response strategic plan for COVID-19 (1) is to control
COVID-19 by suppressing virus transmission and preventing related illness and death. Current
evidence indicates that SARS-CoV-2, the virus that causes COVID-19, generally spreads from
person to person. Understanding how, when, and what kind of place the SARS-CoV-2 spread
occurred is essential for establishing public health measures as well as infection prevention and
control measures to break the chain of transmission. SARS-CoV-2 transmission can occur
through direct contact, indirect contact, or close contact with an infected person through
secretions such as saliva and respiratory tract secretions or airway droplets that are released when
an infected person coughs, sneezes, talks, or sings. . Airway droplet transmission can occur when
a person has close contact (within 1 meter) with an infected person who has respiratory
symptoms (such as coughing or sneezing) or who is talking or singing; under these
circumstances, respiratory droplets containing the virus can reach the mouth, nose and eyes of
susceptible persons and can cause infection. Airborne transmission is defined as the spread of
infectious agents caused by the spread of droplet nuclei (aerosols) which remain infectious when
floating in the air and moving over long distances. An experimental study measured the number
of droplets of various sizes that remained airborne during ordinary speech activities. However,
the authors acknowledge that this measure is an independent action hypothesis, which has not yet
been validated for humans and SARS-CoV-2. To date, the transmission of SARS-CoV-2 via an
aerosol route of this type has not been demonstrated and needs further investigation due to the
possible implications of this transmission route. One of the studies Experiments producing
infectious aerosol samples using a high-power jet nebulizer under controlled laboratory
conditions found the presence of SARS-CoV-2 virus RNA in the aerosol in air samples that
lasted up to 3 hours. New clinical reports in which healthcare workers exposed to COVID-19
index cases where aerosol-generating procedures were performed did not find nosocomial
transmission if proper contact and droplet precautions were used, such as wearing a medical
mask as part of personal protective equipment (PPE), These observations indicate that in this
context no aerosol transmission occurs. To determine whether live SARS-CoV-2 can be detected
in air samples in places where aerosol-generating procedures are performed and the role of
aerosols in transmission, further research is needed. Transmission of SARS-CoV-2 appears to
occur primarily through droplets and close contact with infected symptomatic cases. In an
analysis of 75,465 COVID-19 cases in China, 78-85% of the clusters occurred within
households, indicating that transmission occurs in prolonged close contact. Preliminary data
from China indicates that people without symptoms can spread the infection to others. To better
understand the role of transmission from asymptomatic people, transmission from an infected
person who is never asymptomatic (asymptomatic transmission) and transmission from an
infected but asymptomatic person (presymptomatic transmission) needs to be distinguished. This
distinction is important in the development of public health strategies to control transmission.
The true extent of asymptomatic infection in the community remains unknown. The proportion
of people whose infection is asymptomatic may vary with age due to the increased prevalence of
comorbid conditions in the older age group (so that the risk of severe disease increases with
advancing age), and as a result the likelihood of children showing clinical symptoms is lower
than in adults. Early studies from the United States and China reported that, based on the absence
of symptoms at the time of testing, many cases were asymptomatic; however, 75- 100% of these
people develop symptoms later. A recent systematic review estimated the proportion of cases
that were completely asymptomatic to range from 6% to 41% and an overall estimate of 16%
(12% –20%). However, all studies reviewed in this systematic assessment have important
limitations. For example, some studies do not clearly describe the follow-up of asymptomatic
people when tests are performed to determine whether these people have ever had symptoms,
and other studies have very narrowly defined “asymptomatic” as people who have never had a
fever or respiratory symptoms, not as a person who has no symptoms at all. A new study from
China that clearly and precisely defines asymptomatic infection indicates that 23% of infected
people who have never had symptoms. Evidence and experience clearly shows that limiting close
contact between an infected person and other people is critical to breaking the chain of
transmission of the virus that causes COVID-19. Identifying suspected cases as soon as possible,
carrying out tests, and isolating infectious cases are the best ways to prevent transmission. Apart
from that, all close contacts of infected persons must be identified so that such close contacts can
be quarantined to limit further spread and break the chain of transmission. By quarantining close
contacts, potential secondary cases will separate from others before showing symptoms or start
shedding the virus if infected, thus preventing any chance of further spread. The incubation
period for COVID-19, which is the time between exposure to the virus and the appearance of
symptoms, is 5-6 days on average, but can be up to 14 days. Therefore, quarantine should be
carried out 14 days from the last exposure to a confirmed case. If a contact cannot be quarantined
in a separate place, that person must undergo 14 days of self-quarantine at home; people
undergoing self-quarantine may need assistance while implementing physical distancing
measures to prevent the spread of the virus. Because asymptomatic people can transmit the virus,
efforts should be made to encourage the use of cloth face masks in public areas where
community transmission1 occurs and where other preventive measures such as physical
distancing are not possible. Cloth masks, if made and used properly, can act as a barrier to
droplets that the wearer releases into the air and the environment. However, the use of masks
should be part of a series of preventive measures, which include frequent hand cleaning, physical
distancing where possible, cough and sneeze labels, and environmental cleaning and disinfection.
Also recommended are precautions that include avoiding crowded crowds in confined spaces as
much as possible, especially where physical distancing is not possible, and ensuring good
environmental ventilation in any enclosed premises.

II. Problem Formulations

The IMF has set four priority steps in dealing with a pandemic. Both developed and developing
countries are expected to enter economic recession. Investors may not be willing to lend money
to these countries which would increase borrowing costs. They called for greater disbursement of
funds to health services, financial support for workers and business people, continued central
bank support and a clear plan for getting out of the outbreak towards economic recovery. What is
the correlation between worldwide disease outbreak and international commercial provision
change? What is the urgency of forming a new international commercial provision? To give a
statement about the urgency of forming a new international commercial provision, the possibility
of enacting a new provision and the mechanism.

III. Research methods

The method used in this research is a research method descriptive, with a focus on the study of
economic externalities from Covid-19

IV. Discussion
 COVID-19 has spread across the world, and so have protectionist measures.
Governments on various continents have implemented a number of measures allegedly
protecting their economies and health systems from the damage caused by the pandemic. The
COVID-19 pandemic is a form of threat to national security. Therefore, the state is responsible
for providing protection for its citizens, both from an economic and social perspective. One form
of state responsibility towards its citizens is to create national economic prosperity, so that the
state will do everything it can to protect the sustainability of the economic sector.

The economic and health crisis caused by the COVID-19 pandemic led countries that
originally upheld the principles of free markets to issue hundreds of thousands of trillion in
subsidies to improve their defenses from foreign companies. The European Union, an
organization that has been predicted to be the most successful supranational body in history, can
be an example of how when it is met with an unplanned situation, the national interest becomes
the top priority of every country. At the start of the COVID-19 pandemic in the European region,
several European Union countries imposed a ban or limit on the export of medical equipment
supplies to fellow member countries in need. Examples of countries that have implemented the
ban are Germany and France. This decision was taken by the government's emergency unit to
avoid a shortage of PPE in the race against the COVID-19 virus. This is of course contrary to the
single market concept that the European Union has been proud of. Not only the European Union,
restrictions or bans on the export of medical devices are also carried out by many countries such
as the United States, China, and others. When analyzed using the concept of national interests,
export prohibition or restriction activities are a form of state efforts to protect their national
interests, namely ensuring that the supply of masks and medical devices for their country is
sufficient during a pandemic.

The same situation can be found in the case of export-import of foodstuffs during the
COVID-19 pandemic. The decision of several countries to impose restrictions or ban on exports
of foodstuffs can be said to be a form of protectionism policy carried out by the state based on
national interests. For exporting countries, one of the main goals of limiting exports is to ensure
that their country has sufficient food supplies, especially during a pandemic. The COVID-19
pandemic has resulted in reduced productivity in the food supply chain. The obligation to follow
social distancing procedures and other health protocols requires workers to maintain a distance,
so that automatically the number of workers allowed in one room decreases. In addition, many
food processing factories have had to close because employees are sick or unable to meet health
standards. As a result, food sources that involve many parties in the processing process cannot
produce optimally in the same time compared to the period before the pandemic. Therefore,
these materials are predicted to experience shortages due to the COVID-19 pandemic.33 It is
unclear when the health crisis caused by COVID-19 will end plays a role in the government's
consideration to ensure food stocks are met. Therefore, export restrictions or prohibitions are one
of the government's strategies in maintaining the national food supply.

There are several examples of countries implementing export restrictions during the
COVID-19 pandemic. The first example is the country of Romania, which decided to ban
exports of wheat, corn, rice, sunflower, other grains, vegetable oil, sugar and bakery products
while the COVID-19 pandemic is still ongoing. As one of the largest grain exporters in the
European Union, Romania is making efforts to protect their food supplies during the COVID-19
pandemic. Furthermore, a ban on the export of foodstuffs was also imposed by the Eurasian
Economic Commission (EAEU), namely the economic zone supervisory agency for Armenia-
Belarus-Kazakhstan-Kyrgyzstan-and Russia. The restricted commodities include flour, rice,
wheat, and others.34 These two examples are only a fraction of the total countries that have
imposed export bans or restrictions since the COVID-19 pandemic occurred. The export ban was
imposed by countries using the COVID-19 pandemic as a momentum to legitimize economic
policies taken. Before the COVID-19 pandemic emerged, countries that were members of the
WTO agreed not to allow an export-import ban unless the ban was imposed temporarily in a
situation that could prevent scarcity of certain foods or products that were crucial to the parties
concerned.

The corona virus disease (Covid-19) pandemic has caused scarcity of goods such as food
and beverage products, food to health equipment. Thus, Indonesia's dependence on other
countries in international trade will be higher during this pandemic to meet people's consumption
needs. Unfortunately, there are still various international trade regulations that hinder the supply
of these products. The government needs to evaluate these inhibiting regulations so that people's
needs can be fulfilled during this pandemic. He also explained that several countries have
implemented policies to restrict the export of certain commodities which have resulted in
reduced supply to Indonesia.

The Covid-19 pandemic has caused countries to adopt a temporary export measure policy
so as to limit the export of certain products such as masks, foodstuffs such as Vietnam. There are
91 countries that have taken the export restriction policy. It is feared that temporary export
measures will continue to occur and be permanent, so there is a risk that many countries will start
thinking about their policies to shut down. On the other hand, there are still 93 countries
implementing export easing aimed at helping other countries.

Head of Euro Cham Import-Export, Rachmat Hidayat, said that currently there are still a
number of regulations that hinder international trade activities in Indonesia. There are still
layered import licenses for food and beverage products, making it difficult for business actors.
"For example, there must be a permit for the mayor, regent, governor, ministry of agriculture and
ministry of trade. This is how complex. Even though the permit is expired, "explained Rachmat.

The Indonesian Ministry of Trade also issued a temporary ban on imports of live animals
from China because the epidemic originated in that country. This is regulated in MOT No.10 of
2020 which was issued on February 6, 2020. Then, the Ministry of Trade gradually takes
strategic steps based on Government Regulation No.1 of 2020, Presidential Decree No.9 of 2020,
and Presidential Decree No. 11 of 2020.

The strategic policies carried out by the Ministry of Trade during the Covid-19 pandemic,
namely: First, budget reallocation and refocusing. This was done among others through an
assistance program for the People's Market in dealing with the impact of Covid-19. Second, by
maintaining price stabilization and guaranteeing stock of staple goods. Among other things,
through the deregulation of policies related to food and ensuring the smooth distribution of staple
goods. Third, safeguarding the provision of medical equipment, including by relaxing imports of
personal protective equipment (PPE) and masks. Fourth, providing non-fiscal economic
stimulus. Among other things, the issuance of a Certificate of Origin (SKA) for export goods
through the application of an affixed signature and stamp. Fifth, monitoring of circulating goods
and / or services in online trade. During the pandemic, the Ministry of Trade closed accounts of
online traders selling medical devices such as masks, hand sanitizers, and shout out viruses at
very high prices and of low quality. Sixth, facilitation of exports during a pandemic. One of them
is by facilitating virtual business matching activities. In addition, during this pandemic, the trade
ministry has succeeded in increasing the export of coffee to Egypt and seaweed to South Korea.
Seventh, the use of international trade cooperation forums, such as the G20 forum.

On the other hand, countries that are highly dependent on imports of foodstuffs should
feel the negative impact of export ban policies. One example of a continent that is most
disadvantaged by this policy is the African continent. As one of the largest continental food
importers, the export ban will have an impact on food security and economic growth in African
countries if it is continued. Therefore, the authors argue that trade restrictions cannot be used as a
long-term solution to the issue of shortage of supply because it can cause a domino effect which
in the end can harm exporting and importing countries. Uncooperative trade policy actions run
the risk of exacerbating disruptions in global food markets, which could lead to a larger spike in
world food prices.

The financial crisis came from the state of the United States (US), which is known as the number
one economic power in the world today. The impact shows influence in various aspects, and
affects many countries, one of which is Indonesia. The financial crisis that occurred in the US
was caused by errors stemming from improper economic policy making or in the language of
architects it can be called a 'system failure'. In current economic thinking, there is also an
overconfidence that occurs in market fundamentalism which affects most economic actors,
namely that the financial authorities are often instrumental and inevitably have to take action in
the event of a crisis. Reflecting on the US case, since 1980, there have been many crises at that
time, including 1982 international banking, the 1984 bankruptcy of Continental Illinois, and the
failure of Long-Term Capital Management in 1998, and in every authority, it was the financial
authorities that finally poured out funds to stimulate the economy to can bounce back or at least
provide a way out to solve the problem. The economic paradigm that has developed to date. In
the anti-capitalist global movement which then demands the development of good relations in
the micro sector between producers and consumers whose effects can provide support for social
justice and economic independence, therefore the market must be directed towards this goal. On
the other hand, the anti-capitalist movement demands a regulation on capitalism such as the post
world war. Then with the anti-capitalist socialist movement, it is said that there is only one
alternative for capitalism to be consistent, namely by modernizing it, which can be interpreted as
a more democratic economic planning (Callinicos, 2003). Data from the Chinese National Health
Commission as of Tuesday, February 11, 2020, shows that the number of victims of the corona
virus in mainland China has reached 1,016. There are various kinds of new confirmed cases so
that currently it continues to grow. The death toll from the corona virus is more than the death
toll from the Severe Acute Respiratory Syndrome (SARS) outbreak in 2003. Since first
appearing in Guangdong province, SARS has rapidly spread to other countries in the world and
killed 800 people. In 2003, China was still the sixth largest economy in the world. Meanwhile,
China is currently the second largest economy in the world after the United States. An economic
downturn of 0.5 to 1 percent will certainly have a tremendous impact. When the SARS outbreak
hit, China's contribution to the world economy was less than two percent. As China's economy
weakened by about a percentage point due to the SARS outbreak, the world was less shaken. The
IMF estimates that the Chinese economy will contribute up to 39.2% of total world economic
growth in 2019. This large contribution from China makes Asia the fastest growing region in the
world, contributing more than two-thirds of global growth. According to IMF forecasts, China's
economy will grow 6.1 percent in 2019, and slow down to 5.8% in 2020. The IMF projection is
made without taking into account the effects of the economic downturn due to the Coronavirus.
The corona virus has proven to be hitting the Chinese economy hard. The multinational company
has stated to temporarily suspend its production process. On January 30, Toyota announced that
it would temporarily suspend production until February 9, 2020. A number of multinational
companies ranging from Facebook, Honda, Nissan, LG Electronics to Standard Chartered
decided to temporarily travel on business to China. Several countries, including Indonesia, have
also banned flights to China. It is not known that it is looking for a loan to keep the business
running. Reuters reports about 300 Chinese companies are seeking loans of around 57.4 billion
yuan. The funds are needed to overcome disruptions caused by the closure of a number of cities,
factory interruptions and supply disruptions. In addition, fintech companies also provide soft
loans. MYBank, Alibaba's Ant Financial online credit unit, announced that it will provide a 12-
month, 3-month interest-free soft loan for borrowers from Hubei province, which is the epicenter
of the Coronavirus (How Far Can Corona Virus Hit the World Economy - Tirto, n.d.). Outside of
China, the South Korean economy is expected to be the hardest hit by the impact of the outbreak
on such an easy economy. Economists project the Ginseng Country's economy will grow at 2.1%
in the first quarter, down a 0.4 proportion point from a Reuters poll in January. On the other
hand, the economies of Thailand and Taiwan are expected to grow at 0

, 2% and 1.3% in the current quarter, which is the lowest growth in almost half a decade (Waw,
RI Called Safest from Corona Economic Impacts, n.d.). In fact, economists argue that should the
outbreak continue to worsen and weigh on the outlook further, growth is expected to drop a
further 0.5 percentage point to one full percentage point across all surveyed countries. The
Corona virus has had a significant impact on the economic sectors of several countries in the
world. First of all in Asia we see that the fall in the stock market is not only experienced by
Indonesia, maybe all stock exchanges in the world have fallen due to the sentiment of the corona
virus. Stock markets in Australia fell more than 7%. Concern about the impact of the spread of
the corona virus on the economy and the fall in world oil prices has become a negative sentiment
for the fall in the Australian stock market.
The overall objective of the preparedness and response strategic plan for COVID-19 (1) is to
control COVID-19 by suppressing virus transmission and preventing related illness and death.
Current evidence indicates that SARS-CoV-2, the virus that causes COVID-19, generally
spreads from person to person. Understanding how, when, and what kind of place the SARS-
CoV-2 spread occurred is essential for establishing public health measures as well as infection
prevention and control measures to break the chain of transmission.

V. Conclusion

Reference

- ANCAMAN KRISIS EKONOMI GLOBAL DARI DAMPAK PENYEBARAN VIRUS

CORONA (COVID-19) Chairul Iksan Burhanuddin*1 , Muhammad Nur Abdi2
Universitas Muhammadiyah Makassar; Volume 17 Nomor 1 Maret 2020 Hal.710-718

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sfvrsn=1534d7df_4 Transmisi SARS-CoV-2: implikasi terhadap kewaspadaan
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